Embrace interest-free banking, Reps urge CBN, others – Newstrends
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Embrace interest-free banking, Reps urge CBN, others

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The House of Representatives has urged the Federal Government, especially its financial institutions to create more interest-free banking opportunities for Nigerians.

This was specifically directed at the Federal Ministries of Finance, Budget, and National Planning; Agriculture and Commerce (now Industry, Trade and Investment).

The House ask them to provide “a deliberate policy that will encourage the Bank of Industry, the Bank of Agriculture, Nigeria Incentive-Based Risk Sharing system for Agricultural Lending, micro-finance banks, and other government-owned financial institutions to provide non-interest banking to their customers.”

It also urged the Central Bank of Nigeria to review its current policy on non-interest banking and direct the Development Bank of Nigeria and commercial banks to integrate same into their systems.

It urged the CBN to review its policy on non-interest banking to allow commercial banks “carry it out as a product rather than having to acquire a separate license for non-interest banking as is obtainable currently.”

These resolutions were based on a motion moved by a member of the House, Kabir Tukura, which was unanimously adopted at the plenary on Thursday. It was titled, ‘Need for Banks to Adopt Non-Interest Banking System to Stimulate the Economy.’

Moving the motion, Tukura said, “The House is concerned that conventional banking is an interest-based system whose relationship with their customer is that of creditor and borrower, where interest is fixed in advance and risk or loss is only incurred by the borrower. A large number of Nigerians, especially those from the northern part of the country, do not take loans with interest due to religious concerns, which thus short changes them from benefitting from Federal Government policies and stimulus packages and is constituting one of the major reasons for the slow economic growth of the region.

“The House is concerned that Nigeria’s lending rate, in conventional banking, is one of the highest in the world, and creates serious hardship, particularly on low–income earners, most especially in this period of the COVID–19 pandemic. The House is disturbed that with higher interest rates, interest payments on credit cards and loans are more expensive, consequently discouraging people from borrowing and spending with the attendant decrease in consumption.”

Non-interest banking, he contended, would encourage asset banking with financial transactions tied to tangible assets such as real estate investment or investment which would not depreciate

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Bitcoin turns Crypto market pink, Investors flee to U.S. Dollar

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Bitcoin turns Crypto market pink, Investors flee to U.S. Dollar

Bitcoin’s correction below $96,000 has caused the cryptocurrency market to turn “pink.”

This most recent rally is by no means inconsequential, as retail and institutional data indicate waning demand.

Although the asset seems to be moving independently of the fundamentals of cryptocurrency, it is being influenced by an unpredictable macroeconomic environment.

Bitcoin is still gaining attention, even though trade tensions between the U.S. and China are causing market jitters. Derivative structures, sentiment indicators, and investment flows all suggest a rise in caution.

The announcement of new Chinese tariffs on the world’s largest economy weakened risk appetite. Bitcoin immediately lost the bullish momentum that was part of a larger trend of people fleeing to safer assets in the face of trade tensions.

Although Donald Trump’s response, which imposed a 25 percent tariff on steel and aluminum, caused traditional markets to stabilize, the market swiftly recovered and regained confidence.

This political response also allowed Bitcoin to find some air. However, market fundamentals show that retail and institutional weakness indicators are present.

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According to the data, institutional purchasing volumes are not impressive. $204 million was invested in Bitcoin ETFs in the U.S. between February 3 and February 7, compared to $742.3 million worth of Bitcoin purchased by Strategy during that time. A definite sign that leveraged traders are lowering their exposure is the sharp decline in futures premiums, which went from 11% in early February to 8%.

Investors are choosing safe-havens, as evidenced by yield declines in U.S. Treasury notes. This momentum has made the U.S. dollar index show strength, reflecting an increase in risk aversion in international markets.

The U.S. Fed’s latest signals also show less incentive to cut rates quickly, further putting Bitcoin bulls in jeopardy.

U.S. Economy Supports Fed’s Caution

Overall, the economy is doing well,” Jerome Powell stated at his Senate hearing on Tuesday, February 11, 2025. As a result, he defended the Fed’s monetary policy wait-and-see approach. Even though inflation is higher than the 2 percent target, the Fed does not anticipate any more rate cuts in the near future.

Monetary easing is anticipated to be restricted to 35 basis points by the end of the year.

The dollar fell 0.17%, or 17 points, and is currently trading at 108 index points on the greenback index in response to this cautious approach.

The spotlight now shifts to the inflation figures for January, scheduled to be unveiled on Wednesday.

If these figures indicate persistently elevated inflation, they might prompt the Fed to prolong its stringent policy, curtailing any optimism surrounding a vigorous reduction in interest rates.

Powell will continue his hearing before the House of Representatives, posing a fresh challenge for the market, which will strive to adjust its forecasts concerning the U.S. monetary policy’s trajectory.

The market is also dealing with a fresh rise in protectionism. The threat of a trade war with the European Union has been reignited by Donald Trump’s announcement of a 25% increase in customs duties on steel and aluminum imports.

The foreign exchange market reacted to these announcements immediately. The Japanese yen lost ground against the dollar, dropping 0.3 percent to 152.0, while the euro increased 0.22% to $1.03. Investors are looking to safe-haven assets in this uncertain climate, especially gold, which is seeing a resurgence in interest.

Global markets are becoming more tense as the Fed maintains its position and the White House toughens its trade stance.

Bitcoin turns Crypto market pink, Investors flee to U.S. Dollar

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Emirates, Air Peace in agreement to link 13 Nigerian cities

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Emirates, Air Peace in agreement to link 13 Nigerian cities

As part of a comprehensive Bilateral Air Services Agreement (BASA) between Nigeria and United Arab Emirates (UAE), Emirates Airlines and Air Peace have signed an interline pact.

According to experts, the  move  would   enhance  connectivity for passengers travelling between Nigeria and UAE.

The experts described the partnership as one of the major steps to drive collaboration between foreign carriers and indigenous operators.

Emirates Airlines said in  a statement yesterday that    the  partnership would expand  its  footprint to 13 new cities in Nigeria with frictionless single-ticket travel and simplified baggage throughput.

It explained  that travellers booked on flights from Dubai to Lagos can access more of Nigeria, with onward connections to Asaba, Akure, Benin  , Calabar, Enugu, Ilorin, Kaduna and Owerri.

The interline agreement will also benefit corporate travellers by  connecting them  to additional cities  like  , Kano, Uyo, Port Harcourt and Warri.

Adnan Kazim, Emirates’ deputy president and chief commercial officer said:   This partnership with Air Peace is the next step on this journey, bolstering our connectivity and introducing more travel options for corporate leisure, and travellers visiting friends and family to and from Nigeria.’’

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 Chief Operating Officer, Air Peace, Oluwatoyin Olajide,  said: ,”We are excited about this strategic interline partnership between Air Peace and Emirates, which is a significant step towards enhancing global connectivity for Nigerian travellers.

‘’ It aligns with our mission to provide seamless, world-class travel experiences while expanding our route network and international reach.

“This partnership also reinforces Nigeria’s aviation sector by enhancing connectivity, efficiency and positioning our country as a critical hub for regional and global travel.’’

Once the implementation begins, it would be easy for a traveller to book an Emirates’ international  flight from any of the 13 cities and be picked from the city by Air Peace to link up with Emirates Airline for the flight out of the country.

Nigeria and UAE are also set to commence a mutual air travel ties with the  signing of  an amended BASA between them.

Aviation and Aerospace Development Minister Festus Keyamo  penned his name on behalf of Nigeria  and UAE’s Minister of Economy  Abdulla Bin Touq Al Marri for his country.

The ceremony took place  at the ICAO Global Implementation Support Symposium (GISS) 2025 in  Abu Dhabi.

 Key areas agreed by both countries  include expansion of codeshare agreements, capacity building and technical support, especially   safety, airport facilitation and security.

Keyamo, in  a statement yesterday  by  his Media Aide, Tunde Moshood, emphasised the importance of enhancing connectivity between Nigeria and the UAE  with a focus  on  interlining opportunities for Nigerian airlines.

The minister also advocated a review of UAE’s visa restrictions on Nigerians. He  stressed that easing the current conditions would increase passenger traffic on designated routes and benefit both nations.

 Keyamo  reaffirmed Nigeria’s readiness to work closely with the UAE to implement the agreement and ensure both countries  maximised  the economic and operational benefits of a strengthened partnership.

Emirates, Air Peace in agreement to link 13 Nigerian cities

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NNPC says Kaduna refinery is at 60% completion

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NNPC says Kaduna refinery is at 60% completion

Going words of the Nigerian National Petroleum Company Limited (NNPCL), the Kaduna Refinery and Petrochemicals Company (KDPRC) has attained more than 60 per cent mechanical completion.

NNPCL Executive Vice President (Downstream) Isiyaku Abdullahi dropped the hint yesterday in Abuja during the NNPCL Workshop/Engagement session with Kannywood artistes.

He said the company has been working assiduously to deliver the refinery this year, adding that the state-run oil firm was simultaneously working on the pipelines with its in-house capacity.

Abdullahi said: “Kaduna in sha Allah should come on stream this year. We are working tirelessly for the pipelines. We are working on Kaduna.

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“God willing, it should come to stream this year. We are working tirelessly on the pipelines. We are doing in- house project; we have gone more than 60 per of mechanical completion.”

Abdullahi said: “All the three refineries work directly under my superintendence. And as you are aware, God has been wonderful with a good leadership that we have been able to revamp Port Harcourt and Warri Refineries.

“And by God’s grace, this year, we will deliver Port Harcourt Refinery.”

The EVC urged Nigerians to get prepared for the purchase of the Initial Public Offer (IPO) of NNPCL very soon.

He advised them to set aside some of their funds for the investment in oil and gas will is accountable for several derivatives globally.

Abdullahi said: “For all Nigerians, there is an opportunity. Very soon, we will go IPO. We will go public. Put certain amount of money aside so that come and get from oil and gas.”

NNPC says Kaduna refinery is at 60% completion

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